Irish tech SMEs secured €522m in venture capital in 2015

Regina Breheny, IVCA
Regina Breheny, IVCA

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5 February 2016 | 0

Irish tech SMEs raised €522 million in 2015, an increase of 30% on last year, according to the Irish Venture Capital Association VenturePulse survey published association with William Fry.

The survey showed that Irish companies raised €522 million from investors in 2015. Private investors, including Angels, provided the bulk of seed funding in 2015.

This compares with €400.8 million in 2014 and represents a 90% increase in activity over the five-year period since 2010.

Total seed funds raised in 2015 was €43.8 million (8% of total funds raised). This compares to €66.8 million (17% of total funds raised) in 2014 and represents a decrease in seed activity of 58% in the five year period since 2010.

International investors invested €241 million (46% of total funds raised) in 2015 compared to €132 million (33% of total funds raised) in 2014. This source of funds has grown from €45.5 million (17% of total funds raised) in 2011 over the five-year period.

“The results show increased interest by overseas investors in the Irish tech sector which is a tribute to the calibre of its entrepreneurs and technology capabilities,” said Brian Caulfield, chairman, IVCA.

“The Irish venture capital community continues to be the main source of funding for Irish innovative SMEs both through direct investment and as the local lead investor for international syndicate investors.”

Regina Breheny, director general, IVCA (pictured), added that 18% of the funds were raised by eight Irish companies who went directly abroad, mainly to Silicon Valley, compared to 13% in 2014. “This is a growing phenomenon and further validation of the calibre of the Irish technology sector,” she said.

Breheny added that the 30% increase in funding overall was significant in view of the fact that most Irish venture capital companies have been in the middle of fundraising programmes.

It is expected that first round seed funding at 8% of funds raised should bottom out due to such funds currently being renewed by Enterprise Ireland’s Seed & Venture Capital Programme of 2013-2018.

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